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- Is a set of moral principles or values that may be general  Studies indicates that a large percentage of enterprises doe
or professional. have a code of ethics.


- Imposed by society and moral duties, and individuals - Often includes a set of beliefs and value system, with attemp
are guided by general ethics. balance philosophies and policies set by international entities


- The practice of ethics above the requirements of the - Professional accreditation system set by an organization’s co
law is selected by professionals. ethics.


- Have their foundations in the ethics environment – the - Formal document that states an organization’s primary value
classical philosophies, the religious beliefs, and value the ethical rules it expects employees to follow.
system of countries, including the Philippines.
1. Investor and owner – for fair return on their investment
SMALL NUMBER 2. Customer – for safe products.
- There are indicators that the small number of 3. Suppliers – for fair deals
enterprises that are mindful of societal interest may be 4. Employees – for decent wages.
on the UPTREND, as the technology and customer
watch groups that direct businesses towards ethical  Codes of ethics of professional, service, and manufacturing se
principles. often show common statements that address the needs of
- The cost of the ethical and moral solutions is an investors, customers, suppliers, and employees.
expected deterrent.  TYPICAL DECLARATION
- Include those related to conflict resolution, disciplinary action
ETHICAL DECISION-MAKING PROCESS compliance with labor laws for its employees.
 Statement that address investor, supplier, and cust
- Cost-estimate steps to arrive at a convincing moral requirements may include respect for trade secrets, us
solution company assets and information, and fair business deals.
ETHICAL PRINCIPLES THAT MAY NOT ENTAIL ADDITIONAL COST  Each individual needs ETHICS to live in disciplined manner
OR MONEY, SUCH AS; - Some rules are put into law; however it may be difficult for
to be legislated.
1. serving an honest day’s work among the employees. - Some individual act incorrectly because their ethical
standards differ from society, or because they choose to
2. volunteering in waste management promotion, like recycling be self-seeking.
and preservation of the environment; PROFFESIONAL, especially those dealing with businesses
3. rejecting business products, television stations, and other often face the tough task of pursuing ethical practices.
media that promotes objectionable shows;

4. uprightness or truth in advertising.

5. production and delivery of organically grown fruits and MANAGEMENT ASSOCIATION OF THE PHILIPPINES (MAP)
vegetables and other food products; and
- In the Philippines the MAP has taken the lead
6. preparation of and obedience to the business code of ethics. - in the practice and inculcation of business ethics
through its member-companies.

2.2 LEGAL RESPONSIBILITIES All business enterprises need to comply with a country’s law and
regulations. Obedience to local, national, and relevant international laws
constitute legal responsibilities.
NTIAL LAWS THAT EXPLAIN LEGAL RESPONSIBILITES OF PHILIPPINEalso inform suppliers, tradesmen, and distributors of their rights and the
RPRISES: attendant penalties for noncompliance with the provision of law
rporation code (batas Pambansa bilang 68) R.A. 8435 – AGRICULTURAL AND FISHERIES MODERNIZATION ACT OF 1997
nsumer act of the Philippines (R.A 7894) Section 41 - the creation of the Network Information Network
nimum wage law (NIN), at the Department level, down to the regional, provincial,
and municipality level
grant workers and overseas filipino act of 1995 (R.A 8042)
Section 42 - the information and marketing service of the NIN, such as the
vironmental legislation, which include the following: following:
esidential decree (P.D) 1586 an environmental impact statement
a. Supply data
m b. Demand data
C. Price and price trends
A 6969 is concerned with the toxic substances and hazardous and
ear waste control act of 1990 d. Product standards for both fresh and processed agricultural and fisheries
A 8749 includes the clean air act of 1999 e. Directory of, but not limited to, cooperatives, traders, key market centers,
processors, and business institutions concerned with agriculture and fisheries
A 9003 Is concerned with the Philippine ecological solid waste
agement act of 2000 at the provincial and municipal levels

A 9275 looks at the clean water act of 2004 f. Research information and technology generated from research institutions
involved in agriculture and fisheries
A 9512 gives permission for the environmental awareness and
ation act of 2008. g. International, regional, and local market forecasts h. Resource accounting
Corporation Code (Batas Pambansa Bilang 68) dictates the most
rtant legal responsibilities toward investors and owners, asSection it 45- private sector use of the NIN (NETWORK INFORMATION
antees that the enterprise is managed in the interest of its stockholders
Consumer Act of the Philippines (R.A. 7894) details the legal Pambansa
g 68. responsibilities of enterprises toward their buyers, suppliers,
esmen and distributors. Section 26 - Commercial Fishing Vessel License and other and Other Licenses
granting the municipal or city government jurisdiction over municipal waters
policy statement under R.A. 7894 mandates that the conductdefined of by the code
ness and industry must implement measures for
otection against hazards of health and safety;
The MIN is an information service designed to take care of the
otection against deceptive, unfair, and unconscionable sales acts and
statistics needs of key players in the Philippine mango industry
tices; An often-repeated motto is that the best assets of organizations
are people or employees. So, enterprises must look after these valuable
ovision of information and education to facilitate sound choice and the
er exercise of rights by the consumer; and involvement of customer
The most important Philippine law that guides enterprises in the
esentatives in the formulation of social and economic policies.
care of their employee-stakeholders is the Minimum Wage Law.
implementing agencies tasked to ensure product safety under RA. 7894 The Minimum Wage Law entails the compliance of organizations
de the DOH for food, drugs, cosmetics, devices, and substances; withthe the minimum wages that their employees are entitled to.
artment of Agriculture (DA) for agricultural products, and the The Philippines also look after working in foreign countries
artment of Trade and Industry (DTI) for consumer products not through the OVERSEAS WORKERS WELFARE ADMINISTRATION (OWWA) and
The OWWA is the government welfare institution that protects
894 and promotes the interest of the overseas Filipino workers (OFW)
The POEA was created in 1982 under presidential decree 797,
ecognized under executive order 247 in 1987.
The compliance of enterprise with the relevant environmental laws is
The POEA was created in 1892 under presidential decree 797 and
anized under executive order 247 in 1987.
The POEA administers republic act 8042, knows as the migrant The ECC certifies that based on the representations of the
rs and overseas filipino act of 1995 proponent-enterprise, the project of undertaking will not cause significant
R.A. 8042 promotes the welfare and protects the rights negative of environmental impact.
nt workers, and whenever applicable, all overseas Filipinos, in affiliation The certificate attests compliance with ENVIRONMENTAL
he Department of Foreign Affairs (DFA), DOLE, and the OWWA. IMPACT SYSTEM (EIS) and commitment to implement the ENVIRONMENTAL
In 2007, Republic Act 9422 amended the Migrant Workers and MANAGEMENT PLAN (EMP)
eas Filipinos Act of 1995, strengthening the regulatory powers of the

owers and functions of the POEA under R.A. 9422 include

ting private sector's participation in the recruitment andl overseas

ment of workers by setting up a licensing and registration system;

ming migrant workers, not only of their rights as overseas workers, but
heir rights as human being

oying only to countries where the Philippines has concluded bilateral

ments or arrangements

most challenging legal responsibilities of business and industry toward

unity-stakeholders is the growing concern for the environment In the
pines the Environmental Management Bureau (EMB) of the
tment of Environment and Natural Resources (DENR) is mandated to
ment and enforce the following environmental legislation:

. 1586: This establishes an environmental impact statement system,

ing other environmental management-related issues.

6969: Toxic Substances and Hazardous and Nuclear Waste Control Act
90 covers the importation, manufacture, processing, handling, storage,
portation, sale, distribution, use, and disposal of all unregulated
cal substances and mixtures in the Philippines. 3. R.A. 8749: Clean Air
1999 oversees the formulation of a holistic national program against
llution that shall be implemented by the government, through proper
ation, and effective coordination of function and activities.

. 9003: Philippine Ecological Solid Waste Management Act of 2000 calls

he institutionalization of a national program that will manage the
ol, transfer, transport, process, and disposal ot solid waste in the

9275: Clean Water Act of 2004 aims to protect the country S bodies of
from pollution from land-based sources (industries and commercial
ishments, agriculture, and community o household activities).

A. 9512: Environmental Awareness and Education Act of 2008 mandates

alyze environmental, education in the country.
ORPORATE GOVERNANCE attributes, and properties expressly authorized by law or incident to its
orate governance is the set of procedures designed to ensure that the
any is managed in the interests of the shareholders. - Under Philippine laws, therefore, the corporation is a person different from
its stockholders or members. As such, it can own property, sue and be sued,
eholders are the owners of a corporation, as distinguished trom the
and enter into contracts in his/her own name.
rs in a partnership and the proprietor in a sole proprietorship.
- When the Securities and Exchange Commission (SEC) issues the certificate
ic ownership of corporations is a prime generator of capital that builds
of incorporation, the corporation starts to exist.
ustains large corporations. The prices of shares of stock increase when
nvesting public believes in the integrity of the financial statement - The stockholders of the SEC-registered corporation have limited liability the
mation. shareholders are liable only to the extent of their investment in the
eholders or investors are suppliers of capital They should be convinced
integrity of the communication process with the investee corporations- The death of any of its stockholders does not dissolve a corporation-it
continues to exist until the expiration of its life, which is fifty years, but may
e Philippines, there are also regulators tasked to protect the interests
also be extended any number of times, provided that the extension shall not
porate investors and to promote the integrity of the securities market.
exceed fifty years in any one instance.
audited financial statements in basic accounting textbooks illustrate the
- In a corporation, the shares of stocks can be transferred from one
nsibility of the financial officers, auditors, and executive officers of
stockholder to another, without consent from the other stockholders.
- The power to bind the corporatio
Corporation Code defines a corporation as "an artificial being created
peration of law, having the right of succession and the powers.

n is with its board of directors. The stockholders do not have the power -to
The terms transparency, accountability, and fairness are ess
bind the corporation. principles in the organizing function of managers.
.The guiding principles of transparency International provi
- To reiterate, corporate governance ensures compliance with the
complete definition of the transparency principle.
provisions of the Corporation Law of the Philippines, the provisions of
The term accountability means that employees will perform a job
which guarantee that the enterprise is managed in the interest of its
corrective action when necessary, and report upward on the statu
quality of their performance.
- Cebu Pacific Air (CebuPac), one of the country's leading air transport Faireness may be measured by the equity theory. THE EQUITY TH
companies, developed a Corporate Governance Manual that contains states that people assess how fairly they have been treated acco
principles and best practices that the Board and Management commit to two key factors – OUTCOMES and INPUTS
themselves to. The manual states strong adherence to the principles of
transparency, accountability, and fairness. Selected stipulations in the
manual include the following: Board Governance, which states the
composition, qualifications,

1. and disqualifications of the Board of Directors

2. Board Committees, which enumerate the Audit and Risk Committee,

Governance, Nomination and Election Committee, and Remuneration and
Compensation Committee

3. Stockholders' Rights and Protection, which outline the governance

covenant of CebuPac with all its stockholders

4 Governance Monitoring and Self-assessment, which allows the Board to

create a self-rating system to measure its performance

- Selected measures of economic development include gross

domestic product (GDP), inflation rate, poverty. food threshold,
and subsistence data. Comparative poverty and food threshold
and subsistence

- The primary role of business in economic development is the

creation of jobs.

- Employment advances economic development and boosts

social indicators to satisfactory levels.

- The observance of business ethics, where business and

industry look out for their stakeholders, assures this

- In the Philippines, business and industry leaders who serve as

models for economic development and thrusts through their
companies are given recognition by the Sycip Gorres Velayo &
Co. (SGV) Foundation through its Entrepreneur of the Year (EY)
Philippines program.

- The EY Philippines program aims to recognize the inspiring men

and women who demonstrate the winning vision, determination,
and innovative mind-set that empower them to transform
industries and drive social and economic change. Dolinies
Programs, and Practices

- the practice of business ethics, legal responsibilities, corporate

governance, and participation in a country’s economic
development has allowed several enterprises to evolve into
virtuous businesses.


– encourage people to scrutinize the reinforcement and
renewal of the foundation of the virtuous business in his